Publication

Consumer Watchdog Cracks Down on Payday Lenders, Bucking Trump

The deregulatory winds blowing through Washington aren’t benefiting the $3.6 billion payday-loan industry, as the U.S.’s top consumer watchdog issued rules Thursday that will dramatically change how many companies providing expensive credit to cash-strapped borrowers do business.

CFPB curbs on payday lenders get tangled in Cordray's future

The Consumer Financial Protection Bureau will require payday lenders to verify income and take other steps to protect borrowers, issuing a long-awaited rule that has become tangled in a tug of war over Director Richard Cordray’s future.

The rule limits how often a lender can attempt to debit a borrower's account, a practice that can rack up bank fees. It also curbs lenders’ ability to advance cash repeatedly to the same borrowers, most of whom are working class and low-income Americans.

New U.S. rule on payday loans to hurt industry, boost banks: agency

WASHINGTON (Reuters) - Revenues for the $6 billion payday loan industry will shrivel under a new U.S. rule restricting lenders’ ability to profit from high-interest, short-term loans, and much of the business could move to small banks, according to the country’s consumer financial watchdog.

The Consumer Financial Protection Bureau (CFPB) released a regulation on Thursday requiring lenders to determine if borrowers can repay their debts and capping the number of loans lenders can make to a borrower.

Business Groups File Lawsuit Against CFPB’s Arbitration Rule

WASHINGTON—A coalition representing financial companies sued the Consumer Financial Protection Bureau Friday, challenging a new rule making it easier for consumers to band together to sue over complaints about bank accounts, credit cards and payday loans.

Finance Industry Plans Lawsuit to Overturn CFPB Rule

A coalition of corporate lobbying groups, led by the U.S. Chamber of Commerce, sued the Consumer Financial Protection Bureau to overturn a rule that makes it easier for aggrieved customers to file lawsuits against financial firms.

Finance groups file lawsuit against CFPB arbitration rule

The latest attack on the Consumer Financial Protection Bureau’s arbitration rule comes from the finance industry, with several finance groups and chambers of commerce filing a lawsuit challenging the rule.

3 more reports question CFPB’s actions and structure

Recent projects completed by the Competitive Enterprise Institute and the Cato Institute again delved into unsatisfactory assessments of the Consumer Financial Protection Bureau.

Bankers To CFPB: Help Us Help Families In Need

By now, the sobering statistics are familiar: Nearly half of American adults say they could not cover an unexpected expense of $400, according to the Federal Reserve. Now, a new study by the Consumer Financial Protection Bureau (CFPB) similarly shows that more than 40 percent of Americans struggled to pay bills at some point during 2016.

How to confront your bank about overdraft fees

If you’ve got a problem with your bank’s overdraft fees, you should say something.

That’s what U.S. Sen. Cory Booker recently did. In letters to 13 bank CEOs, the New Jersey Democrat asked for details about their overdraft practices, efforts to convince customers to join overdraft protection programs and reliance on overdraft fees as a source of income.

One of his key concerns: Only a small percentage of consumers shoulder the burden of paying hefty overdraft charges.

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